businees plan

· Your Company’s SWOT Analysis

· The Value Proposition of Your Product or Service (See Instructions and Requirements.

· The Marketing Mix; Product or Service, Pricing, Promotion, Distribution Channels.

VIII . Human Resources and Personnel

· Key Personnel

· Your Resume, Employee Positions / Qualifications, Required Training, Benefits

I. Executive Summary

Investors, lenders, executives, managers, and CEOs are busy. Always. That means the executive summary is an essential gateway for your business plan to get read.

An executive summary should describe your company, explain what the company does and summarize the key points of the report. It should restate the purpose of the report, highlight the major points of the report, and describe any results, conclusions, or recommendations from the report. It should include enough information so the reader can understand what is discussed in the full report, without having to read it.

The most important part of an executive summary is the first paragraph that clearly explains what the company does.

Requirements of the Summary

The key components typically include:

· Overview of a company/business

· Identification of a main problem or proposition

· Analysis of a problem or proposition, with supporting facts, data, and figures

· Possible solutions and their justifications

Instruction: Read the definition / example below and replace with your Company

What is a business description?

A company description provides an overview of key aspects of your business, like what you do and what makes your business unique. Anyone reading your business description should have no problem understanding the scope of your business.

· Keep it short, simple, and easy to read

· Proofread, proofread, proofread

· Determine whether it’s interesting

1. Who?

Who are you? Verify that the name of your business is clear in the business description section of your business plan. Include your name (and the names of any other owners) because lenders and investors want to know the entrepreneur behind the business.

Who is your target customer? Who are you selling to? When describing your business, make sure you know who you appeal to. If you don’t know your target customer, there’s a chance that nobody will be interested in your business.

2. What?

What is your product or service? If lenders and investors can’t understand what you’re selling or how it’s significant, they may pass on your concept. Be clear, narrow, and focused when telling lenders and investors about your business.

What are your goals for your business? Set realistic short-term and long-term goals. For example, if you plan on selling $20,000 worth of products by the end of the second month, include the goal in your description.

3. Where?

Where is your business located? If you are currently operating your business, list the address. Likewise, make sure you state where you want your business to be if you are still looking for office space.

II. The Business Description

Instruction: Read the definition / example below and replace with your Company

Requirements;

The 5 W’s and 1 H

4. When?

When will you implement your business plan and see results? Include when you want to open your business (or when you opened it).

When do you plan on achieving your goals? Also, talk about the timeline for your main goals (both short-term and long-term).

When do you think you’ll leave your business? Don’t forget to discuss your exit strategy. Whether you plan on retiring in 20 years, selling your company in 15 years, or closing it down in 10 years, be clear about when you plan on parting ways.

5. Why?

Why would potential customers want to buy from you? Explain why you are different from the competition. This is where you can describe your business’s originality. Lenders and investors want to know why consumers would want to make a purchase at your small business instead of a competitor’s.

Why are you in business? Also make sure you include your business’s mission statement. A mission statement defines why you’re in business and what your goals are.

6. How?

How are you going to structure your business? Which business structure will you form: sole proprietorship, LLC, partnership, or corporation? Explain your structure decision, too. Mention any small business advisor (e.g., business attorney) you work with to help with registration requirements, regulations, and liabilities.

How are you going to achieve the goals you set for your business? Are you going to hire employees to help you, or will you handle all responsibilities on your own? Talk about what steps you’ll take to reach the goals you outline.

II. The Business Description- Example

Instruction: Read the definition / example below and replace with your Company

Business description example

Ann’s Office Hut delivers office supplies to small businesses in Boston, Massachusetts. The business is structured as a sole proprietorship, operating under entrepreneur Ann Smith. Ann’s Office Hut is located in Boston, Massachusetts and will begin operations in February. Ann’s Office Hut recognizes the busy lives of small business owners and wants to bring essential items like printers, cash registers, paper, ink, and envelopes to their doorsteps. Ann’s Office Hut will conveniently provide office supplies to small business owners who are short on time. Other office supply stores cannot match the convenience Ann’s Office Hut will give.

The business hopes to have gross sales of $30,000 by the end of one year and $95,000 by the end of five years. To achieve this goal, Ann’s Office Hut plans on offering referral credit

III. The Mission Statement

Instruction: Read the definition / example below and replace with your Company

Requirements:

A mission statement is a sentence describing your business goals and philosophies. This action-oriented statement lets customers know your company’s purpose.

A mission statement is defined as an action-based statement that declares the purpose of an organization and how they serve their customers. This sometimes includes a description of the company, what it does, and its objectives. A mission statement is a short summary of your company's purpose.

When writing a mission statement, spotlight your business’ ethos. This is not an illusory sentence. It’s the core belief of your company. The best way to approach it is to ask yourself, why are you in business, and what problems are you solving?

Examples:

1. Disney

In its memorable mission statement, the Walt Disney Company focuses on the company’s greater purpose: “To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling; reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company.”

2. Southwest Airlines

The Southwest Airlines mission statement focuses on its status as a customer centric company: “The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”

3. Universal Health Services, Inc.

‘IV. The Business Model

Instruction: Read the definition / example below and replace with your Company

A business model is the operational plan your business has for making money. It’s an explanation of how you deliver value to your customers at an appropriate cost. This includes descriptions of the products or services you plan to sell, who your target market is, and any required expenses.

Examples: TOMS, Warby Parker - Hidden revenue business model

With this model, users don't have to pay for the services they use. However, companies still earn a revenue from different sources. For example, a search engine may receive advertising money from businesses who bid on keywords even though the site's users don't pay for the use of the search engine.

Examples: Facebook, Instagram - Open-source business model

An open-source business model offers both a service or product that's free, as well as a business version that's paid. While a "freemium" business model involves a free product that's built and created by a company centrally, an open-source business model includes a free product that's built and created by an open community of developers.

Example: Fastly - Bricks and clicks

A bricks and clicks business model is essentially an extension of an in-store shopping experience. In this model, stores offer online ordering with the option of in-store pickup or online-exclusive items.

Example: Target - Distributor business model

In a distributor business model, companies have one to three key distribution channels to reach its final customer. If your company uses this model, it doesn't need to manufacture its own products. Instead, it can focus on product distribution. For example, a company can purchase its products from a manufacturing company and then resell these products to its customer base or to various retailers. With this business model, distributors can set prices to earn a profit and use various promotional strategies to ensure sales.

Example: Unilever - Aggregator business model

In an aggregator business model, an aggregator acts as an intermediary between the involved parties. This model lets a company work with various goods and service providers and lets it sell its offerings under its brand.

Example: Hotels.com - Conceptual business model

This business model is a diagram that details an industry's or business' functions. Companies that require concepts and ideas to create unique or innovative products can benefit from a conceptual business model. This type of business model typically requires research to create new ideas.

Example: Maruti Suzuki - Razor and blade business model

In a razor and blade business model, companies offer a basic product at a cheap rate and a complementary product or refill at an expensive rate. The latter essentially serves as a bait since it makes it seem as though customers will receive a bargain. When a company offers a cheaper product, it hopes its customers will eventually purchase more expensive accessories. Companies use this model when they have a complementary product that can encourage customers to make another purchase.

Example: Apple - Inverted razor and blade business model

This business model is the opposite of the razor and blade business model. In the inverted razor and blade business model, companies offer an initial purchase with a high margin or price point and sells consumables at a much lower margin to encourage the initial purchase. For example, a company like Apple may sell a certain a product at a high cost to consumers, but also offer other products at a low margin to encourage consumers to start by purchasing the high-cost item.

‘IV. The Business Model

Example: Apple - Franchise business model

A franchise is an established business that's purchased and reproduced by a buyer known as the franchisee. The original owner, known as the franchise, works with the franchisee regarding various business operations such as financing and marketing to ensure the business runs and operates like its predecessor. In this business model, the franchiser receives a percentage of the profits from the franchisee.

Examples: Starbucks, McDonald's, Subway - Multi-sided platform model

In this business model, companies offer services to the two different sides of a business. For example, a job site like Indeed helps job seekers find employment, while also helping human resources managers find the right candidates for their company's open positions.

Example: Indeed - Crowdsourcing business model

In a crowdsourcing business model, companies receive feedback, opinions and work from a variety of people through the internet. When companies use this business model, they can access a large network of talent instead of hiring in-house employees.

Examples: YouTube, Indiegogo.com, IMDB - Software as a Service (SaaS) business model

SaaS is a cloud-based service where software is licensed on a subscription basis. In this business model, customers pay a monthly subscription fee to access a software.

‘V. The Business Strategy

Put simply, Business strategy is a clear set of plans, actions and goals that outlines how a business will compete in a particular market, or markets, with a product or number of products or services.

A business strategy is an outline of the actions and decisions a company plans about how your business will compete in a particular market, or markets, with a product or number of products or services.

What the Company’s goals and objectives are and it’s strategy to reach its goals and objectives.

Requirements;

Here are 10 examples of different types of business strategies:

· Cross-sell more products. ...

· Most innovative product or service. ...

· Grow sales from new products. ...

· Improve customer service. ...

· Cornering a young market. ...

· Product differentiation. ...

· Pricing strategies. ...

· Technological advantage.

VIII. The Industry Analysis

Requirements;

1. Who are your three nearest competitors? (List by name)

2. How will your operation be better than your competitors?

3. How are your competitor’s business doing? Static? Growing? Declining?

4. How similar are competitor operations to yours?

5. What are your Competitor’s Strengths, Weaknesses, Opportunities, Threats.

VI. The Market

Instruction: Read the definition / example below and replace with your Company

Requirements;

1. Describe exactly your target market; Demographics – age, sex, profession, income. Etc.…

2. What is the present size of the market?

3. What is the market’s growth protentional?

4. What market share do you expect to capture?

5. What is your expected growth rate? How do you arrive at that growth rate?

Requirements;

· Specialized marketing expertise

· Exclusive access to resources or patents

· New, innovative products or service

· Business location

· Cost advantage through proprietary knowledge

· Quality processes or procedures

· Strong brand or reputation

· Specialized marketing expertise

· Exclusive access to resources or patents

· New, innovative products or service

· Business location

· Cost advantage through proprietary knowledge

· Quality processes or procedures

· Strong brand or reputation

· Lack of marketing expertise

· Undifferentiated products or services

· Business location

· Competitors have superior distribution channels

· Poor quality of goods or services

· Damaged or marginal reputation

VI. Your Company’s SWOT Analysis

Instruction: Read the definition / example below and replace with your Company

Requirements;

Your Company’s Opportunities (examples;)

· Developing market ( China, the internet)

· Mergers, joint ventures, or strategic alliances

· New, attractive market segments

· New international markets

· Loosening of regulations

· Removal of international trade barriers

· A market led by a weak competitor

Your Company’s Threats (examples;)

· New competitor (s) in your home market

· Price war

· Competitor has new, innovative substitute

· New regulations

· Increased trade barriers

· Removal of international trade barriers

· Taxation may be introduced on your product

IX. The Marketing Plan

Instruction: Read the definition / example below and replace with your Company

In marketing, a customer value proposition consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment.

Requirements;

A good value proposition offers three highly important qualities:

· Relevancy — By clarifying how your specific product or service can improve a situation or solve a particular problem for your customer.

· Differentiation — By displaying what makes your brand stand out from all other alternatives available in the market.

· Quantified value — By delivering distinctive and measurable benefits to your clients.

Illustration: Slack – Be More Productive at Work with Less Effort

Slack is a workplace productivity and messaging app. It’s deceptively simple to use, yet robust enough for large teams working on complex projects (as evidenced by Slack’s very clever inclusion of the NASA Jet Propulsion Lab example on the homepage), so what sets Slack apart from the thousands of other messaging and productivity apps?

For one, few (if any) other productivity apps boast as many integrations as Slack does. This means that its almost guaranteed to fit into just about any company’s existing communications workflow. It’s this diversity of supported apps that has helped Slack almost singlehandedly dominate the workplace productivity space.

Instruction: Read the definition / example below and replace with your Company

Requirements;

· What is your product of service? – describe and explain

· What are the key features of your product? – describe and explain

· What new, innovative features differentiate your products or service form competitors' products or services? – describe and explain

· How many varieties of your product / service? – describe and explain

· What warranties included? – describe and explain

· What service support? – describe and explain

The Product Pricing Strategy

· What is the pricing strategy? – describe and explain

· How does your product / service pricing? – describe and explain

· Are there different pricing tiers – describe and explain

· compare with competitors? – describe and explain

· What Value pricing features and price? – describe and explain

· What Low-cost pricing features and price? – describe and explain

· What Premium pricing features and price? – describe and explain

‘VII The Marketing Mix

Instruction: Read the definition / example below and replace with your Company

Requirements;

The Product Promotion Strategy

· Purpose of promotions?

· Educating – describe and explain

· Persuading – describe and explain

· Reminding – describe and explain

· What type of advertising, promotion?

· What advertising, promotion channels employed?

Placement and Distribution Strategy

· On-demand – describe and explain

· Off the shelf – describe and explain

· What distribution channels employed? – describe and explain

· Domestic, International distribution, or both? – describe and explain

X. Human Resources

and

Personnel

VIII Human Resources

Instruction: Read the definition / example below and replace with your Company’s Human Resources and Personnel Plan

The Human Resources Function

Key Personnel -- describe the qualifications and responsibilities of management. The quality of management is often the key factor in obtaining debt or equity funding.

Human resources involve the recruiting, selecting, evaluating, and training of the individuals who are employed by and necessary for the functioning of the firm.

The modern term for all functions pertaining to personnel is human resource management.

Requirements;

· What types of employees? How many employees will you need? – describe and explain

· Will you ever hire freelancers or independent contractors? – describe and explain

· What is the pay structure (hourly, salaried, base plus commission, etc.)? – describe and explain

· Will you provide benefits? What benefits? – describe and explain

· How do you plan to find qualified employees and contractors? – describe and explain

· What type of training is needed and how will you train employees? – describe and explain

· Provide and Organization Chart with Job Titles

END